The Cooperative Development Authority-Davao (CDA-11) has warned the public against borrowing from unregistered cooperatives in the region.

CDA-11 urged the public to transact only with legitimate cooperatives as the number of lending cooperatives in the region is increasing, some of which have been found to be operating illegally.

According to Maria Theresa Dave, senior cooperatives development specialist of CDA-11, the increase in such cooperatives is due to the rising demand for loans among individuals seeking capital for businesses and other financial needs.

CDA-11 said the public can ensure that the cooperative is legitimate by checking its registration documents and other permits.

The agency also warned that anyone proven to be involved in the operations of illegal cooperatives will face penalties under the Philippine Cooperative Code of 2008 (RA 9520).

The public is also urged to report any unregistered organizations that offer promotions or collect money without proper documents in order to prevent potential scams.